CHAPTER I

GOVERNMENT SECURITIES

Introductory

1.1 To facilitate the investment of Savings Bank deposits in Government Securities, the Indian Post Office, acting as Agent to the Government of India, used to (undertake) prior to 1-3-65 the purchase, sale and custody of Government Securities on behalf of Savings Bank depositors. The facility of fresh purchase of Government securities through P.O. Savings Bank accounts has, however, been withdrawn w.e.f. 1-3-65. The facility of sale custody and credit of interest on securities already purchased through Savings Bank Accounts before 1-3-65 continues. Such transactions are regulated in accordance with the Indian Securities Act (X of 1920) and subsidiary rules made there under by the President of India both of which will be found in the Government Securities Manual. Rules regarding such transactions, for the guidance of investors are published in the Sub Section "Investments" in Section VI of the Indian Posts and Telegraphs Guide. Detailed rules of procedure to be followed in Indian Post Offices will be found in Chapter 8 of the Posts and Telegraphs Manual, Vol. VI (Post Office).

NOTE-- The Indian Securities Act (X of 1920) does not recognise any Trusteeship in Government Promissory Notes. These Notes are regarded as the property of the person in whose name they stand issued or endorsed and these endorsements are considered valid so long as the Notes have been dealt with under the provisions of the Law and rules framed there under. As Government securities, held in the custody of the Director General, Postal Services, stand in his own name, he may use his own discretion on the merits of each case, apart from the provisions of the Indian Securities Act or the rules issued there under in making endorsements in favour of claimants.

1.2 The rules, governing the submission of accounts to the Postal Accounts Offices in respect of transactions in respect of Government securities and the maintenance of initial, accounts from which the accounts so rendered, are compiled, will be found in Posts and Telegraphs Manual Vol. VI (Part II). The initial checking and the accounting work in connection with Govt. securities is centralised in the office of the Director of Accounts (Postal) Calcutta.

Director General Imprest--Purchase and Sale of securities through The Reserve Bank of India

1.3 An imprest of Govt. Promissory notes of the values of Rs. 1 lac in various Govt. of India loans is held by the Director General, Postal Services. Owing to the abolition of facilities for fresh purchase of Govt. Securities through the Savings Bank Accounts with effect from 1-3-1965 this imprest need not be replenished as and when the nominal value falls short of Rs. One lac, as a result of maturity of loans in the imprest. Transactions on account of sales should always be effected through Reserve Bank of India.

In order to keep a watch over the state of the imprest the following registers are maintained in the Govt. Security Section.

1.
2.
3.

1.4 Posting of transactions relating to maturity or sale of individual loan or bond and the balance of imprest at the end of each month, which is arrived at by deducting from the previous month's balance is shown thereon is made in the register in form D.G. (PA)-200.

The register should be submitted to the Director of Accounts (Postal) by the 10th of the following month.

1.5 The Register in form DG (PA)-201 is maintained for the purpose of working out the monthly balance of imprest. This is done by deduction from the previous month's balance, the value of any loan or bond discharged on maturity.

The monthly balance of imprest as worked out herein should be verified with that shown in the Register in form D.G. (PA)-200 (for controlling the imprest). The register should be submitted to the G.O. in-charge of the section for monthly review.

1.6 Govt. Securities, held in the Imprest of the Director General, Postal Services are, as and when necessary, sold through the Reserve Bank of India.

1.7 When Govt. Securities are to be sold through the Reserve Bank of India either out of imprest, or the depositors holdings in the Director General's custody, the particulars of the securities are entered in the Issue side of the Stock Day Book and the Day Book and a requisition in form D.G. (PA) 203A is sent to the Reserve Bank along with the Govt. Promissory Notes duly endorsed in its favour when Govt. securities tendered for sale by a S. B. Depositor are to be sold through the bank, the securities tendered after examination by the Public Debt Office will be sent to the bank duly endorsed in its favour along with a requisition in form D.G. (PA)-203(A). On receipt of the Banks intimation of sale, the debits thereof are checked and appropriate note of sale is kept against the respective entry in the Day Book. The particulars of sale are noted in the Register of sale of Govt. Securities, through the bank in form D.G. (PA)-212 and the entries in the Register are initialed by the Branch Officer on the same day.

The entries are totaled monthly and the total amounts of sales thus arrived at should be agreed with the monthly totals of the credit scrolls received from the RBI, Calcutta and the credit adjusted on this account by the C.A.S., R.B.I., Nagpur.

NOTE.- Transactions on behalf of S. B, Depositors will be completed within 14 days from the date of receipt of the application or such further period beyond 14 days as may be specified by the investor on his application. If owing to the absence of buyers in the market the bank is unable to effect the transactions within 14 days, the period within which a transaction should be, completed will be specified on the requisition sent to the Bank.

1.8 The sale proceeds of the Govt. Securities: realised from the Reserve Bank of India either for reducing the imprest or on behalf of S. B. depositors are adjusted in the accounts as follows: On receipt of intimation of sale from the Reserve Bank of India, Calcutta by G.S. Section.

(i) In case of sale of Govt. Promissory Notes for the imprest.

Dr.

0021 Taxes on Income other than Corporation Tax deduct from interest on Securities.

8661-Suspense Account

(2) Suspense Account (P&T)

(4) Remittance to Bank.

Cr.

8661-Suspense Account

(2) Suspense Account (P&T)

5.

(g) Cost of Govt. Promissory Notes in the imprest.

(Iii) In the case of sale of G. P. Notes for the S. B. depositors

Dr.

8661-Suspense Account

(2) Suspense Account (P&T)

(4) Remittance to Bank.

Cr.

8661-Suspense Account

(2) Suspense Account (P&T)

5.

(i) Net cost of Govt. Promissory Notes outside the imprest.

Purchase of Securities.- The facility of purchase of Govt. Securities through P.O. Savings Bank Accounts has been withdrawn w.e.f. 1-3·1965 by the Government.

Safe custody and delivery of Securities:

1.9 On receipt of an application for the safe custody of securities, the notes and the application should be examined with references to Rule 48(1) of Savings Bank Rules in Section VI of the Post Office Guide. Any irregularities noticed should be communicated to the Postmaster, if necessary, in Form No. D.G. (P.A.) 218 and the application and the securities returned to him for submission after completion. When everything is in order, the securities should be entered in the Day Book Form No. D.G. (PA) 209 and sent to the Public Debt Office with a requisition (in duplicate) in Form No.' D.G. (P.A)-21O for renewal or examination of the endorsement, re-enhancement at Calcutta Treasury (if necessary) and drawing of arrear interest, if due, on those securities. On receipt of the securities from the Public Debt Office, the application should be entered in the register maintained in Form No. D.G. (PA)-222. The date of receipt back of the securities from the Public Debt Office with their nominal value should be noted against the original entry in the Day Book. The particulars of the securities should also be entered in the Intermediate Day Book and then transferred to the stock Day Book. A receipt for the securities should be made out in Form No. D.G. (PA)-214 and forwarded under a covering letter (Form No. D.G.(P)-223) to the Postmaster for the delivery to the depositor, together with an advice of interest, less income tax at ,the prescribed rate for credit to his Savings Bank Account, if any interest is due on the securities tendered for safe custody. If the depositor has already some holdings in the same, kind of securities in the custody of. the Director General, Postal Services, the nominal value of securities tendered, for safe custody should be noted in the ledger card maintained for him, otherwise a new account should be opened in the ledger card under the date on which the application is received, complete in all respects from the Postmaster and attested by the Branch Officer-in-Charge of the Section. The register in Form No. D.G. (PA)-222 should be reviewed by the Branch Officer on the 15th of each month.

NOTE l.-- Securities belonging to deceased depositors may be kept in custody through the account of the person to wham they are to be delivered, if he desires them to be so kept. Even if the securities are taken delivery of and subsequently tendered by him for safe custody, they may be accepted.

NOTE 2.-- When Government Securities taken delivery of on behalf of a minor depositor duly endorsed in his favour are subsequently -tendered for safe custody by the Director General, Postal Services, on attainment of majority, no such declaration is necessary if the account opened on his behalf through which Government securities were purchased is operated upon by him alone under Rule 34-A of the Post Office Savings "Bank rules on his attaining majority and the ex-minor intends to retain them in the custody of the Director General, Postal Services. In such cases, an application from the ex-minor that he intends to keep the securities in the custody of the Director General, Postal Services may be obtained along with the original safe custody receipt which should be returned after necessary correction.

NOTE 3.-- Payment orders for the full half years interest less income tax should be issued along with the safe custody receipt when the securities are tendered for safe custody within a fortnight before the close of the half year of the loan concerned.

NOTE 4.-- When the Director General's receipt for securities held in Safe-Custody is reported to be lost, the depositor would report the matter to the Postmaster concerned, who would after exercising the necessary checks and certificates as prescribed in Rule 66 of the Director General's Special Post Office Circular No. 36, dated 23-12-1966, forward the same -to the Director of Accounts (postal), Calcutta (Government Security Section). The application on receipt should be carefully examined to see that the case is genuine with reference to the notes in the personal ledger card of the holder and that the securities are actually laying un-disposed of. The guard file of acknowledgements for S. C. Receipt or, certificates issued in lieu thereof should also be examined to see whether any certificates in the case in question had already been issued previously. If the application is in order and the securities stand un-discharged, a certificate in lieu of the lost S. C. Receipt in form D.G. (PA) 216 containing the particulars of the original S.C. Receipt should then be issued and sent to the Postmaster concerned for delivery to the applicant together with a forwarding memo in Form No. D.G. (PA)-256 and an acknowledge-ment in Form No. D.G. (PA)-2l7 for return of the acknowledgement with the signature of the recipient the Postal Accounts Office, Calcutta, will watch the return of this acknowledgement and when received back should keep the same after necessary scrutiny in a guard file to be preserved permanently When, however, a S.C. Receipt is lost before delivery to the party, a certificate in lieu thereof should be issued after proper investigation into the case has been conducted by the Divisional Superintendent of Post Offices concerned and a report clearly establishing the loss received in the Accounts Office through the Head of the Circle.

Suitable notes about the loss of original receipt and the issue of the certificate in lieu thereof should invariably he kept in the ledger card of the holder under the initials of the Branch Officer concerned simultaneously with the signing of the certificate and the Postmaster should be instructed to keep similar notes in the G. S. Roll

NOTE 5.-- Delivery of Securities in the form of stock certificates is permitted only in cases referred to in the above sub-para. In such cases Government Promissory Notes of equivalent value should be taken out of stock and endorsed in favour of the President and forwarded to the Public Debt O.ce with a requisition in duplicate in Form No. D.G. (PA) 210 showing the following particulars-

(1) The name of the depositor.

(2) Address of the depositor.

(3) Name of the Treasury or Sub-Treasury.

On receipt of the stock certificates from the Public Debt Office - their return should be noted against the original entries in the Day Book and then charged off on the issue side of the Stock Day Book of Government Promissory Notes. They should then be entered on the receipt side of the Stock Day Book of Stock certificates and charged off 0'1 the issue side thereof.

1.10 When an application is received from a depositor for, delivery of a Government Security out of custody, it should be seen that the safe custody receipt accompanies it. It should also be ascertained by reference to the Government Security ledger card that the security is within the balance of the depositor’s holdings. A security of the same nominal value and of the same loan or bond as that held by the depositor should then be taken, out of the Director General's stock. The security should be charged off on the issue side of the Stock Day Book, necessary entry being made in the register maintained in Form No. D.G. (PA)-224 and then entered in the register of Government Securities received and disposed under the signature of the Gazetted Officer-in-charge of the Section. The nominal value of the security should be debited to the depositor's ledger card under the initials of the Branch Officer and forwarded to the Postmaster with a covering letter Form No. D.G. (PA)-225 and an acknowledgement in Form No. D.G. (PA)-2l5 for delivery to the depositor. The acknowledgement when received back should be placed before the Branch Officer and filed after he has initialed the entries in the register of Government Securities received back within a fortnight from the issue of the securities. The register in Form No. D.G. (PA)-224 should be reviewed by the Branch Officer on the 10th of each month.

NOTE 1-- Enfacement of Securities for payment of interest at a Treasury or Sub-Treasury can be obtained through the Director General, Postal Services, provided the Treasury or sub-Treasury is situated in the States of West Bengal, Orissa, Assam, Meghalaya, Nagaland, Manipur and Tripura including the treasuries and sub-treasuries in the Union Territories of Mizoram and Arunachal Pradesh and the Central Government Treasuries at Port Blair. In such cases the Securities on being taken cut of stock should be entered in the Day Book Form D.G. (PA)-209 and sent to the Public Debt Office with a requisition in duplicate in Form D.G. (PA)-210 for enhancement for payment of interest at Treasury or sub-treasury specified by the depositor on his application. On receipt of the securities from the Pubic Debt Office, their return should be noted against the original entries in the Day Book and they should then be disposed of in the manner stated above.

NOTE 2.- If the payment of interest is required as per Public Debt Office, Calcutta, no enfacement is necessary.

NOTE 3.-- In the case of securities delivered out of custody within a fortnight before the close of the half-year, the amount of full half year's interest less income-tax should be advised to the Postmaster for debit to the depositor's Savings Bank Account under intimation to the Accounts Office concerned.

Sale of Government Securities

1.11 All applications for sale received on a day will be collected and examined to see that they are in order with reference to Rule 47 of the Savings Bank Depositors' Rules in Section VI of the Post Office Guide. In the case of a sale from safe custody it will also be seen that the safe custody receipt accompanies the application and that the nominal value of the securities to be sold is within the amount held for the depositor by consulting his ledger card. Any - irregularity noticed should be intimated to the Postmaster by means of objection memo. in Form No. D.G (PA)-219 and the documents returned to him for resubmission after completion. A memo of cost in Form No. D.G. (PA)-208 will be attached to each application found to be in order and the applications entered in the register maintained in form D.G. (PA)-207. All applications for sale should ordinarily be disposed of on the day following the date of their receipt in the Section or on the next day.

The sale of Securities held in the safe custody will be affected through the Bank. The procedure laid down in Para 1.7 will be followed. On receipt of the Memo of sale from the Bank, the details of the Sale proceeds as actually shown in the Bank's Memo will be noted on the Memo in Form D.G. (PA)-208, attached to the application. In every case the details of sale proceeds will be noted in the register of applications referred to in para 1.11 above. The nominal value of Securities sold will be posted in red ink in the ledger card of the depositor under the initials of the Branch Officer.

Inscribed Value of securities sold

1.12 An intimation of sale in Form No. D.G. (PA)-237 should be sent to the Postmaster advising him of the sale proceeds and of any interest accrued on the securities during the current half year up to the day proceeding the date of sale less income tax, for credit to the depositor's Saving Bank Account. At the same time, an extract of the intimation should be sent, to the Postal Accounts Office concerned for necessary action. The particulars of sale proceeds and interest less income tax should also be intimated to the depositor through the Post master in form No. D.G. (PA)-213. The safe custody receipt sent with the application for sale should be properly punched perforating the word ‘cancelled’ by means of a punching machine in the presence of the Branch Officer-in-Charge under his initials, after which it should be filed separately in guard files. The relevant entry in the ledger card should also be attested by the Gazetted Officer. If the securities, sold form part of an investment held on behalf of a depositor, a revised receipt in Form No. D.G. (PA)-214 for the balance still remaining in the custody of the Director General, Postal Services, should be sent along with the intimation of sale to the Postmaster for delivery to the depositor. On receipt of the intimation from the Postmaster with a certificate of credit to the depositor's Savings Bank Account, the date of receipt should be noted in the column provided for the purpose in the register of applications which should be reviewed by the Branch Officer once on the 15th and again on the last day of every month.

NOTE.-- In the Case of securities sold through the Bank within the fortnight before the close of the half year the following procedure should be followed:-

If an interest Payment Order has been prepared but not issued it will be cancelled. In the case where an IPO has already been issued the net amount of the IPO will be deducted from the net amount of sale proceeds intimated by the Bank and the balance only will be advised to the Postmaster for credit to the depositor's S.B. account. The income tax deduction certificate already issued will be called for and cancelled. Deduct entries under S. B. deposits and Income Tax will be made in the IPO register with a remark that the Securities have been sold through the Bank. A remark to the effect that this has been done and the net amount of the IPO will also be noted on the memo. in Form No. D.G (PA)-208, attached to the application. In the· intimation of sale sent to the Accounts Office concerned a remark will be made to the effect that the net amount of sale proceeds as per Bank's memo. will be posted as credit to the depositor's S. B. account and that the net amount of the IPO will be posted as deduction credit under S. B. deposits as it represents write back of net interest advised.

1.13 In the case of Security tendered for sale, the particulars of the Security should be entered in the Day Book (Form No. D.G. (PA)-209 and the script sent to the Public Debt Office for examination of endorsement and reinfacement at the Calcutta Treasury and drawing of arrear interest if due, or renewal with a requisition in Form No D.G. (PA)-210. If it is returned under objection by the Public Debt Officer, the irregularities should be removed in communication with the Postmasters Form No. D.G. (PA)-218 and the security sent again to the Public Debt Office. When the security is received back after examination or renewal, the securities are to be sold through the Bank according to the procedure laid down in para 1.7. The sale proceeds should be noted on the Memo. in Form No. D.G. (PA)-208 attached to the application. An intimation of Sale in Form No. D.G. (PA)-237 should be sent to the Post Master advising him the sale proceeds together with accrued interest less income tax, for credit to the depositor's account. Intimation should also be sent to the depositor through the Post-master in Form D.G. (PA)-213. An extract of intimation should also be sent at the same time to the Accounts Office concerned for necessary action.

When Government Securities are sold by depositors, the amount is credited to "Savings Bank Deposits" and "021 Taxes on Income Other than Corporation Tax", "Government Security Tax"-or "Savings Bank Deposits" only, by debit to Post Office Savings Bank Investment Account-Net Cost of Government Promissory Notes outside the imprest.

Repayment of Securities on Maturity and Maintenance of Subsidiary General Ledger Accounts

1.14 Government securities held in the custody of the Director General, Postal Services, on behalf of Savings Bank Depositors are repayable through the Post Office on maturity. A list showing names of holders of safe custody acknowledgements, number of their Savings Bank Accounts and the nominal value of securities, is prepared by the Government Security Section of Calcutta Postal Accounts Office in duplicate and sent to each Head Post Office, a fortnight before the date of maturity. On receipt of the duplicate copy of the list, it should be seen that all the items have been initialled by the Postmaster in token of his having checked them. In the case or accounts transferred to other Post Offices, Supplemental lists should be prepared in duplicate and sent to the Postmasters concerned. As regards Safe Custody receipts which have been discharged by the Post Office, a Schedule of Payments of Securities supported by discharged safe custody receipts should be forwarded by Postmasters to the Government Security Section, a copy thereof being also sent to the Postal Accounts Office concerned along with the cash account rendered by them. The entries in the schedule of payments should be carefully checked and any irregularity noticed therein should forthwith be reported to the Postmaster in Form No. D.G. (PA) 220. Any discharge irregularly effected by the Post Office should be entered in a register which should be reviewed by the Branch Officer on the 25th of the following month. Further action in respect of each irregularity detected should be noted in the register. The nominal value of Securities discharged should be debited to the depositor's ledger card and the date of discharge noted in the duplicate copy of the list of holder. The safe custody receipt should be properly punched perforating the word “Cancelled” by means of a punching machine in the presence of the GO-In-Charge under his initial. The relevant entry in ledger card should also be attested by him and the receipt filed separately in guard files.

A subsidiary General Ledger Account in respect of each matured loan is maintained in the name of Director-General, Postal Services by the Public Debt Office. On the maturity of a loan, the stock of Government securities held by the Director General, Postal Services on behalf of the depositors in that loan should be surrendered to the Public Debt Office for cancellation and credit of the value to the subsidiary General Ledger Account in respect of the expired loan.

Half yearly statements showing the balance outstanding at the end of each half year in respect of each expired loan will be furnished to the Director of Accounts (Postal) Calcutta by the Public Debt Office. These balances should be verified in the manner indicated in Note I below Para. 1.16.

1.15 Discharged Safe Custody receipts should be checked with reference to the following points:-

1)
2)
3)

(ii) When the value of Securities exceeds Rs. 5,000--

(a) In the case of a minor depositor, payment should only be made under the orders of the Postmaster General to the legal guardian.

(b) In the case of a lunatic or any person incapable of managing his own affairs, payment should not be made unless and until the applicant has produced evidence to the satisfaction of the Director General, Postal Services, that he is the actual guar-dian of such person. Such evidence should be attached to Safe Custody acknowledgements forwarded to the Government Security Section of the, office of the Director of Accounts (Postal) Calcutta before payment.

4) The a quittance given by the applicant for discharge of securities belonging to a deceased depositor should be accepted on the authority of the Postmaster General recognising the applicant's title to the Securities. The Postmaster-Genera1's authority should be attached to discharged Safe Custody receipts.

1.16 Charges on account of payments of discharged values of Government Securities appearing in the cash Accounts of Post Offices should be taken by the Postal Accounts Office concerned to the head, "P&T Remittance" and passed on to the Government Security Section of the Calcutta Postal Accounts Office through Advice of Transfer Debits so as to reach it by the 14th of the month following that to which the transactions relate. These A.T.Ds. should show the particulars of the Securities disc charged in respect of each Head Office supported by vouchers, if any, received from the Post Offices. The Government Security Section after reconciling these debits with the figures of discharge reported by the Postmasters through their schedule of payments, will prepare a monthly consolidated statements of debits and made the following adjustments :-

The total amount of debit as per these consolidated statements will be taken to the head 8661-- Suspense Account (2) Suspense Account (P&T). (2) Pay & Accounts Office Suspense (Outward) PAO Min. of Fin. (DEA) by per contra credit to the head M-P&T Remittance.

Any difference found at the time of reconciliation will be placed under either of the suspense heads "Departmental Advances- Excess Debits on account of discharge of loan" or Deposits- short debit on account of discharge of loan” and cleared by correspondence with the Postal Accounts Office or the Post Office, as the case may be. A reconciliation register should be maintained for the purpose and submitted to the Branch, Officer on the 25th of the following month.

The statement of discharges i.e. loan Schedule showing the particulars of the loans to which the debit pertains, should also be furnished separately to the Pay and Accounts Officer, Min. of Fin. (DEA). The actual amount of Securities discharged and the debits thereof passed on to the Principal Accounts Officer Ministry of Fin. (DEA), New Delhi through the Settlement Account of the Director of Accounts, Postal, Calcutta should be agreed monthly. The amount of Securities discharged during the period should then be intimated to the Public Debt Office for debiting respective subsidiary General Ledger Account.

NOTE 1.-- One page at the end of the Stock Day Book should be set apart for showing the balance of undischarged securities held by the Director General, Postal Services through the subsidiary General ledgers Accounts. When a stock certificate of matured loan is sent to the Public Debt Office for cancellation, the amount should be entered in the appropriate column and the amount of the securities discharged should be deducted therefrom at the time of sending the quarterly intimation to the Public Debt Office. The balance should be agreed with the corresponding amount of outstanding securities shown in the half-yearly statement received from the Public Debt Office.

NOTE 2.-- Discharged Stock Certificates (vide Paragraph 70 of the Government Securities Manual) received with the monthly statement of discharge securities should also be forwarded to the Public Debt Office for cancellation.

Maintenance of Security Holders' Accounts

1.17 Security holders' accounts are maintained in the loose ledger sheets Form No. D.G. (PA)-248 which are kept in securely locked binders grouped according to each loan and arranged serially according to numbers of Savings Bank Accounts in each Post Office under each Circle. Bound ledgers are also maintained separately for Posts and Telegraphs employees and contractors.

Entries in ledger accounts are made for the following transactions under the attestation of the Branch Office-in-charge of the Section ;-

1.
2.
3.
4.

1.18 Ledger accounts are opened and posted in accordance with the following rules:-

(a) The name of the Post Office the number of the Savings Bank Account and the particulars of the loan in which investment is made should be properly written in the space provided for those purposes. Transaction detailed in Para 1.17 should be noted in proper columns with indications of case mark in the "Remarks" column and a balance struck after each transaction under the initials of the Branch Officer-in-charge of the Section.

(b) The designation of Departmental employees and the nature of work or contract in the case of contractors should be entered in their accounts along with the official designation of the Officers through whom the securities are received.

(c) In the case of securities purchased through security deposit accounts the words "Security deposit" and the designation of the Officer to whom the Securities are pledged should be noted in red ink in the ledger cards.

(d) When a certificate of exemption from or abatement of income tax is produced by a depositor, a note thereof should be kept on the respective ledger cards and the entries duly attested by the J.A.O.

1.19 A transfer register should be maintained in Form No. D.G. (PA)-249 separately for each Postal Circle and in respect of each loan or Bond. Transfers of security holders' accounts from one Post Office to another intimated through supplemental payment orders intimations from Post Offices sale or deliver applications from Investors should be noted in the register after carrying out necessary corrections in the names of Post Offices and numbers of Savings Bank Accounts in tile ledger cards. Cases of Corrections in the numbers of Savings Bank Accounts due to attainment of majority by minor depositors and transfer of securities from Savings Bank Accounts of deceased depositors to those of recognised claimants should also be noted in the register and necessary corrections made also in ledger cards. Transfers of Security holders' accounts affecting Post Offices in two different postal circles should be noted in the register of the transferring circle. The shifting of cards to proper binders for the disposal of items noted in all the transfer register should be undertaken without any avoidable delay in the presence of a J.A.O. who should initial the item in the transfer register as soon as the particular card or cards are removed and put in proper binders. The transfer registers should be submitted to the Branch Officer for review on the 15th of every month.

NOTE 1.-- Ledger cards relating to Saving Bank Accounts of depositors who are reported to have died should be removed to separate binders maintained for the purpose.

NOTE 2.-- When the Government Security holdings of individual Savings Bank depositor are completely sold or delivered and there have been no transactions on their behalf during subsequent three years, the respective cards should be removed from the loose leaf ledger and filed, in a separate binders of closed cards arranged according to Circles and loans.

Check over the annual limit of investment in Government Securities purchased through the Post Office

1.20 The check over the annual limit of investment prescribed in rule 46 of S.B. Rules in Section VI of the P.O. Guide of a S.B. depositor in securities kept in custody of the D.G.P.T. was exercised prior to 1-3-1965 through a running account maintained for the purpose in form No. D.G.P.T.-252 in respect of each individual depositor. The facility of purchase of Government Security having however been ceased w.e.f. 1-3-1965 maintenance of this running account have lost most of their utility. Despite this fact, the cards in the cabinet in custody of J.A.O. may still be maintained until the loans cases are entirely settled/ finalised. Since the holdings of the depositors in various loans are recorded in these cards, they may be utilised as auxiliary records in addition to the usual loose-leaf ledgers.

1.21 Requisition Slip in Form D.G. (PA)-255 in respect of applications for sale of Securities delivered out of custody and repayment of maturity received on behalf of individual investors should also be prepared and used for taking out the cards of respective depositors. Before the applications are finally disposed of the transactions should be posted in the respective cards and the balance of holdings struck therein under the initials of the J.A.O. The cards should then be replaced in the cabinets and the requisition slips removed therefrom.

1.22 When the Savings Bank Account of a depositor having some holdings in Securities in the custody of the Director General Postal Services is transferred from one Office to another, the total amount of such holdings should promptly be ascertained by reference to the relative card maintained for the purpose of exercising the check over the annual limit (vide Para. 1.20). Necessary corrections of the number of account and of the name of the Post Office to which transferred should be carried out in the card on the authority of the intimation received from the Post Office. The card should immediately be placed in proper place in the cabinet of the Post Office to which the account has been transferred.

Security deposits

1.23 Security deposits of Posts and Telegraphs employees and contractors when· they take the form of Government Securities received in trust by an Administrative Officers of the Department, in accordance with the rules in Chapter 14 of the Posts and Telegraphs Financial Hand Book, Volume I should be dealt with by the Director General as far as possible, according to the rules laid down in Chapter VIII of the Government Securities Manual.

NOTE 1.-- One copy of the covering letter received with the Government Securities tendered for safe custody should be returned duly signed by the Group 'A' or 'B' Officer in charge of the Section to the Officer tendering the (securities).

NOTE 2.-- Port Trust, Municipal and City Improvement Trust Debentures and Securities issued by State Government deposited as security, are held in trust by the Director General.

Calculation and Payment of Interest on Securities

1.24 Interest on Government Securities falls due half yearly, on the following dates:-

Names of Govt. of India existing loans and bonds

Particu1ars of Govt. Securities Date of half yearly interest

5.5% compensation Bond 1999 - - 18th January and 18th July.

4.5% Loan 1985 - - - 11th January and 11th July.

5 % Loan1982 - - - 14th January and 14th July

5.5% Loan 1991 - - - Do.

4% Loan 1981 - - - 23rd January and 23rd July.

3% Conversion Loan 1946 - - 15th March and 15th Sept.

4.75% Loan 1989 - - - 14th April and 14th Oct.

5.5% Loan 2000 - - - 10th April & 10th Oct.

5.5% Loan 1999 - - - 29th April & 29th Oct.

4.5% Loan 1986 - - - 7th May & 7th Nov.

5.5% Loan 1995 - - - 10th May & 10th Nov.

3% Loan 1896-97 - - - 20th June and 20th Dec.

5.5% Loan 1990 - - - 30th June and 31st Dec.

5.75% Loan 2003 - - - 11th May & 11th Nov.

5.75% Loan 2002 - - - 14th January & 14th July.

State- Loans

5.75P.C.W.B. Loan, 1982 - - 14th Jan. and 14th July.

6 P.C. Maharashtra S.D. Loans 1985 - 28th Feb. and 31st Aug.

6.5%P.C. Loan 2000 - - - 30th July and 31st Dec.

1.25 One week before the half yearly interest on each loan or bond falls due, inconverted Notes from the Stock are, forwarded to the Public Debt Office for drawing interest in Form No. D.G. (PA) 210-A with forwarding letter in Form No, D.G, (PA)-210 and Government Promissory Notes are received back along with interest warrants. Stock Certificates are not required to be so presented but interest warrants in respect of different classes of securities held in the form of stock certificates are duly received from the Public Debt Office on due dates. An intimation of the amount of interest due on different classes of securities converted into stock certificates is duly received from the Public Debt Office. On receipt of the interest warrants from the Public Debt Office, the gross amount should be checked and the warrants sent to the Public Accounts Department of the Reserve Bank of India under cover of a memo in Form No. D.G. (PA)-258 for realisation and credit of the amount in the India portion of the Bank's account under the head Account between concerned Pay and Accounts Office and Director of Accounts (Postal), Calcutta.

The interest warrant received from the Public Debt Office include interest on four accounts, namely:--

1.
2.
3.
4.

As regards interest on stock certificates, a separate page should be set apart for each half year at the end of the stock Day Book. In the first column should be entered the description of the loan, in the second column the due date on which interest accrues during the half year and in the third column the amount outstanding on the due date. The date of dispatch of the interest warrants should be entered in the column for that particular loan and the entry attested by the Group ‘A’ or ‘B’ Officer in charge of the Section.

NOTE.-- To ensure that all interest warrants in respect of Government Promissory Notes are sent to the Bank, the amount of interest noted in the Bank's credit slip Form D.G. (PA) 209 which should be initiated by the Group A or B Officer.

1.25A. Before the half yearly interest on any loan or bond falls due, the gross interest on the holding of each depositor in that loan or bond, income tax and net interest should be calculated and posted in the proper columns of the ledger card Form No. [D.G. (PA)-248] with particulars of the half year and the number of the interest payment order noted against the item. Interest on all transactions (sale, safe custody and delivery) effected within a fortnight before the close of the half year is adjusted at the time of disposal of these applications. Such transactions should not therefore be taken into account for the purpose of calculation of half yearly interest.

Interest payment order should be prepared in Form No. D.G. (PA)-228(b) from the ledger cards in Quadruplicate of which two copies, one for the S.B. Control Organisation of the respective P.O. and the other for P.O. records, along with a form of certificate of credit in Form No. D.G. (PA)-228(a) and certificates of deduction of income tax in Form D.G. (PA)-263 should be sent to each Postmaster under cover of a forwarding letter in Form No. D.G. (PA)-228 for credit of the net amount of interest noted therein to the depositors Account. Of the remaining two copies, one should be sent to the Postal Accounts. Office concerned with a forwarding memo in Form No. D.G. (PA)-231 while the other is retained as Office copy. These payment orders should be despatched to Postmasters five days prior to the close of the half year to which they appertain. A manuscript register is maintained to effect a reconciliation of the total nominal value in each loan or bond for every half year on which interest has been advised with the amount held in stock excluding holdings of deceased depositors in respect of the said lean or bond. This register should be submitted for the Accounts Officer’s review 10 days after the issue of Interest Payment Orders.

NOTE 1.-- In the case of an Income-Tax free loan the amount of interest to be intimated should be calculated without deduction of Income Tax.

NOTE 2.-- In case an intimation of death of a depositor is received from the Post Office, the fact should be noted in the depositor's ledger card and the running account and the advice of the half year's interest should not be issued. The accumulated interest should be passed for payment in cash after receipt of the application from the recognised claimant regarding the disposal of securities and the Postmaster General’s orders.

1.26 On receipt of interest payment Orders so sent in duplicate the Postmaster will deliver one copy of the same to his S.B. Control Organisation. In the case of an account transferred to a Post Office in a different circle or in the same circle the Postmaster will note the particulars in the space provided below the certificate in Farm NO. D.G. (PA)-228(a) and return the certificate to the Director of Accounts (Postal), Calcutta. A supplemental payment Order in Farm No. D.G. (PA)-229 should be advised by the Director of Accounts (Postal) Calcutta (Govt. Security Section) to the Past Office where the Savings Bank-Account has been transferred with an additional copy thereof for the Savings Bank Control Organisation of that Past Office. A copy of the supplemental payment Order should also be sent to the Accounts Office concerned when amounts of interest on Government Securities advised therein are finally credited by a Post Office in different circle or in the same Circle.

1.27 When a Mohamedan depositor refuses to take interest on Government Securities, a proper note should be kept in the ledger card and the interest as it falls due should be credited to the head “1201 Postal Receipts, 7-other receipts, 2-PostaI Receipts-Other items". If, however, interest is claimed afterwards, it will be allowed with effect from the month succeeding that in which the application is received.

1.28 The balance on which interest is payable in respect of Government Securities held an behalf of a Savings Bank Depositor, should be checked with the depositor's ledger account before interest is advised to the Postmaster for credit to the depositor’s Savings Bank Account. The J.A.O. should before issue of the interest payment orders, test-check a few items in the ledger accounts.

1.29 The interest payment orders should be entered in a register maintained in Form No. D.G. (PA)-232 and despatched with the distinguishing number assigned to each Post Office in a Circle. Before despatch of interest payment orders an agreement should be effected between the closing balance of the Government Securities on which interest for the period in question is advised and that of the preceding half year by taking into account all transactions occurring thereafter. An agreement should also be effected between the total holdings of depositors and the balance shown in the Stock Day Book. The dispatch register should be reviewed by the J.A.O. seven days after the close of the half year to which the interest payment Orders appertain and the Branch Officer in July and January each year. On receipt back, the certificates of credit should be examined to see if the Postmaster have certified that necessary postings have been made in the depositor's accounts. When such postings could not be made on account of transfer of accounts to other Post Offices, whether within or outside the Postal Circle, it should be seen that necessary intimations have been furnished to Post Office where the accounts have been transferred. In the case of accounts transferred to other Post Offices whether within or outside the Postal Circle, supplemental Interest Payment Orders should be prepared in quadruplicate in Form No. D.G. (PA)-229 and despatched in the usual way within three days from the date on which the certificates are received back. In case the certificates of posting interest are not received back within a fortnight from the date of despatch from the Postmasters, a reminder should be issued in Form No. D.G. (PA)-230. When intimations regarding credit of interest to depositors Savings Bank Accounts have not been received from the Post Office where those accounts have been transferred, a reminder should be issued in Form No. D.G. (PA)-230(a) after a fortnight from the dates of issue of those intimations.

1.30 Trust Interest payment orders relating to Postal and - Telecom employees and contractors will be made out in Form Nos. D.G. (PA)-234 and 235 particulars being taken from a register maintained in Form No. D.G. (PA)-227 and communicated to Heads of Circles and other officers to whom the Securities are pledged, for payment for the amounts to the parties concerned, five days before the close of the half year to which the order relate, so that payment may be made on the date on which interest becomes due. The checks prescribed should also be exercised before issue of these payment orders. These registers along with the Despatch Register of Interest Payment Orders should be reviewed by the J.A.O. at the time of issue of payment orders. Such payments, appearing in the cash accounts should be taken by the Accounts Office to the head “Trust Interest Account.” A list of these payments should be furnished by each Accounts Office to the Government Security Section in Form D.G. (PA)-236.

A broadsheet showing the out standings under the head “Trust Interest Account” should be maintained in manuscript by the Government Security Section and reviewed by the Accounts Officer at the end of the third month following.

NOTE.-- Income tax on interest due on the Security investment of Government servants and contractors is calculated at the maximum rate. Commission is also charged in the case of Securities, deposited by the contractors which were not purchased through the Post Office. A Certificate of deduction of Income Tax in Form D.G. (PA)-263 is furnished along with the interest Payment orders.

1.31 The amount of interest (gross) on Government Securities drawn from the Public Debt Office should be adjusted by means, of the following transfer entry.

Dr.

8661-- Suspense Accounts 2. Suspense Account (P&T) 6. Other transactions.-(13) Cash Settlement Suspense Accounts (VI) Account with Accountant General, West Bengal.

8661-- Suspense Accounts

5. P&T Investments-Cost of Govt. promissory Notes Investment certificates held in imprest.

1. Post Office savings Bank Investment Account.

(d) Interest on Govt. promissory Notes due to living Savings Bank Depositors.

(e) Interest on Government Securities held in the Savings Bank Account of the deceased depositors.

(Commission deducted from the interest on Government Promissory Notes).

The amount of interest payable to Savings Bank Depositors and Departmental employees and contractors for their security deposits (vide para 1.30) is credited to the Head (a) 02l--Taxes on Income other than Corporation Tax, Government Security “Tax and (b) Savings Bank Deposits” or “Trust Interest Account” Or “Exchange Account between India and Burma Accounts between the Director of Accounts Postal Calcutta and the Comptroller of Postal and Telegraphs Accounts-Burma Items adjustable by Burma Miscellaneous” of Posts and Telegraphs Remittance, Nagpur Postal Accounts Office”, according as the payment relates to “Savings Bank Depositors in India” or “Departmental employees and contractors” or “Depositors in Burma” or “Depositors in Aden”, by debit to the head. 5. P&T Investments--cost of Govt. promissory Notes and Investments. I. Post Offices Savings Bank Investment Account. (d) Interest on Govt. promissory Notes due to living Savings Bank Depositors.

Payment of Sale Proceeds or Discharge Values of Securities and Interest Accrued thereon after the Death of a Depositor.

1.32 Interest on Government securities falling due on or after the date of death of a depositor or their sale proceeds or discharge values should not be credited to the Savings Bank Account of the deceased depositor. The total amount should be advised to the Postmaster in Form Nos. D.G. (PA)-260(a), 260(b) as the case may be for payment in cash to his legal heir as determined by the Postmaster General through the Post Office where the Savings Bank Account of the deceased stands open.

Sanctions received for the disposal of securities held by a deceased depositor should forthwith be noted in the register maintained in manuscript as well as in the personal ledger card, of the deceased so that no further interest may be advised for credit to the Savings Bank Account of the deceased depositor. The register should be submitted to the Accounts Officer for his review on the first working day of the following month.

NOTE.-- In the case of death of a holder of Government Securities in the safe custody of the Director General, Postal Services, in the shape of security deposit (but not through any Savings Bank Deposit Account) where the conditions laid down in Clause (2) of rule 30 of the Indian Securities Rules 1935 are not fulfilled the Manager, Reserve Bank of India will determine the claims of the heirs of deceased holders in accordance with the provisions of Section 19 of the Indian Securities Act (X of 1920) and clause 1 of rule 38 ibid, as the powers of the (defunct) Controller of the currency are not exercised by him.

1.33 When an intimation of death of any security holder is received, the date of death and other particulars should be noted in a manuscript register and the relevant card or cards should be shifted to the deceased depositor's Binders (vide Note I below Para 1.19) and each entry in the register should be attested by the J.A.O. It should then be examined to see whether any interest has been advised for credit to his Savings Bank Account after the date of his death. If such credit has been advised, the Postmaster of the Office where the Savings Bank Account of the deceased stands open, should at once be addressed in Form No. D.G. (PA)-289 to cancel all such amounts of Interest on Government Securities from the Savings Bank Account of the deceased depositor and a copy of the letter sent to the Accounts Office concerned along with a statement showing the amount of interest written back in the accounts of the Circle concerned. Necessary re-adjustments in accounts should promptly be made by crediting “Post Office Savings Bank Investment Account-Interest on Govt. Securities held in the Savings Bank Accounts of deceased depositors” and debiting “Savings Bank Deposits (deduction from credit) and 021--Taxes on Income other than Corporation Tax-Government Security Tax (deduction from credit).”

When the amount of interest held over and written back is advised to the Postmasters for payments in cash to the claimants of the deceased depositors such amount is forthwith adjusted by the Government Security Section by debit to the head “Post Office Savings Bank Investment Account-Interest On Government securities held in the Savings Bank Accounts of deceased depositors” and credit to the head “Post Office Savings Bank Investment Account-Proceeds of Government Securities sold on behalf of claimants to deceased depositors” accounts and “021-taxes on Income other than Corporation Tax-Government Security Tax."

If the sale proceeds of Securities of a holder have been credited to his account after his death, the Postmaster should at once be addressed to cancel the credit from the Savings Bank account of the deceased depositor and a copy of the letter sent to the Account Office concerned. Necessary readjustment in amounts should be effected by crediting “Post Office Savings Bank Investment Account-Proceeds of Government Securities sold on behalf of claimants to deceased depositor's Accounts and debiting Savings Bank Deposits (deduction from credit)".

The proceeds of Securities of a deceased holder sold on the authority of the Postmaster General should when advised to Postmaster for payment in cash, be credited to “Post Office Savings Bank Investment Account-Proceeds Of Government Securities sold on behalf of claimants to deceased depositors account” and “0021--Taxes on Income other than Corporation Tax-Government Security Tax” and debited to the head “Post Office Savings Bank Investment Account cost of Government Promissory Notes in the Imprest” and “Interest on the imprest of Government Promissory Notes”. The proceeds of Securities of a holder, who dies before the issue of sale intimation to the Postmaster, should not be advised for credit to the Savings Bank Account of the deceased but should be adjusted as above.

A register should be maintained in manuscript in which all transactions of write-back of interest on Government Securities and cash payments should be noted to watch payment and correct adjustment. Each entry in the register should be attested by the J.A.O. in charge.

1.34 Cash payments on account of sale-proceeds of Government Securities and interest accruing thereon after the death of a depositor appearing in the schedule of unclassified payments in the Post Office accounts should be classified by the Postal Account Office concerned under the head “Savings Bank Investment Account-Proceeds of Government Securities sold on behalf of claimants to deceased depositor's accounts”.

A statement in Form No. D.G. (PA)-261 showing the details of cash payments mentioned in Para. 1.32 and 1.33 should be prepared in the Postal Account Section of each Postal Account Office from schedules of unclassified payments and consolidated statement for each postal Circle forwarded to the Government Security Section by the 25th of the month following that to which the transactions relate. The number and date of the pay orders and the detailed head under which' the amount have been adjusted should invariably be quoted against each item.

Receipt and Disposal of Securities

1.35 All Government Securities received should be carefully examined and entered in a register of securities received and disposed of in Form No. D.G. (PA)-242 under the attestation of the Accounts Officer in Charge of the Section. These securities should be sent to the Public Debt Office for examination of endorsement or renewal as the case may be, duly entered in the Day Book maintained in Form No. D.G. (PA)-209 along with s memo in duplicate in Form No. D.G. (PA)-210. Suitable notes should be recorded against the numbers of those securities in the register referred to above. One copy of the memorandum is retained by the Public Debt office while the other will be returned the same day, duly endorsed in acknowledgement of the securities. This register is reviewed by the Accounts Officer on the 15th of each month.

1.36 The acknowledgements should be presented at the Public Debt Office on the due dates noted below:-

(a) Issue of warrant for interest only. After 7 working days.

(b) Renewal, sub-division or consolidation of notes After 9 working days.

(d) Registration of a document After 1 working day.

1.37 On receipt back of the securities after examination or renewal, their return should first be noted against the original entries in the Day Book (Form No. D.G. (PA)-209). The securities should then be brought on to the Stock Day Book (vide para l.40) through the Intermediate Day Book (vide para 1.39) under the initials of the Accounts Officer. Securities received back with objection memoranda should be returned to the Officers concerned for compliance with the requirements of the Public Debt Office.

NOTE l.-- Securities tendered for re-enfacement will not be brought on to the Intermediate Day Book. They should be returned to the Postmaster direct, after re-enfacement.

NOTE 2.-- When Government securities are returned by Postmasters as undeliverable, they will be entered in the stock Book of undelivered securities maintained in Form D.G. (PA)-262. The undelivered Stock is verified by the Accounts Officer on the first working day of each month. They will remain in the name of the holders until they are requisitioned, for by them. The acknowledgement of these securities when delivered to depositors is duly noted in the register (Form No. D.G. (PA)-242) which is reviewed by the Accounts Officer on the 15th of every month.

1.38 When Securities are deposited by Departmental employees and contractors for 12 months or less, or when they are deposited for more than 12 months but the depositor does not desire to draw interest thereon during the period, they should remain in the name of the depositor and be entered on the intermediate Day Book and transferred to Stock Day Book (Form No. D.G. (PA)-244] on a separate page maintained for the purpose, vide Para. 1.39 and 1.40. The words "No interest" should be entered prominently at the top of the ledger card of the depositor.

Intermediate Day Book

1.39 In the Intermediate Day Book [Form No. D.G. (PA)-243] are entered all securities (Government Promissory Notes or Stock Certificates) received from the Reserve Bank of India as well as those received from Heads of Circles and other departmental officers for sale or safe custody. In the latter case the Securities are entered in the Intermediate Day Book only after examination of the endorsement or renewal. The securities are then transferred to the Stock Day Book [Form No. D.G. (PA)-244].

Stock Day Book

1.40 All Government Securities (GP Notes and Stock Certificates) entered in the Intermediate Day Book (vide para 1.39) are transferred to the Stock Day Book which is maintained in Form No. D.G. (PA)-244 separately for Government promissory Notes and Stock Certificates. Entries relating to Securities, mentioned in Para 1.38 i.e. Departmental employees and contractors should be made in the receipt side in a separate page of Stock Day Book and when they are returned or sold they should be charged off on the issue side. Each entry in the Stock Day Book, both on the receipt and issue sides, is attested by the Accounts Officer. The Stock Day Book is balanced monthly. The closing balances as well as the balance under each loan in the Stock Day Book are verified by the Accounts Officer-in-charge of the section on the first working day of each month by actual enumeration of Government Securities in the custody of the Director General, Postal Services.

1.41 In the Stock Day Book separate columns are provided for different loans. It shows on the receipt side the amount of Securities held by the Director General and on the issue side are entered, in detail the amount of all securities returned, sold or converted. When Government Promissory Notes of higher denominations or Stock Certificates as the case may be, are sent to the Public Debt Office for sub division into Government Promissory Notes of smaller denominations, they are not entered on the issue side of the Stock Day Book, but are shown in the Day Book Only.

When there is an accumulation of Government Promissory Notes in the Director General's Stock, they are sent in convenient batches to the Public Debt Office to be converted into Stock Certificates. Government Promissory Notes of each loan are converted into Stock Certificates of the same loan. They are sent to the Public Debt Office with a forwarding letter in form No. D.G. (PA)-210 duly entered in the Day Book [Form No. D.G. (PA)-209].

NOTE.- The Notes sent to the Public Debt Office for conversion into Stock certificates must bear the following endorsement:--

“PAY TO THE PRESIDENT OF INDIA.”

1.42 A separate register (known as Denomination Register) showing the number of Government Promissory Notes of each denomination of each kind of loan or bond held in Stock after each day's transactions should be maintained in Form No. D.G. (PA)-247. The balances in this register at the end of each month under each loan or bond should be verified with the balances exhibited in the Stock Day Book.

1.43 On the 1st April and 1st October each year, an officer belonging to the Outside Audit Department of the Office of the Accountant General, West Bengal, verified the balance of Government Promissory Notes and stock certificates held by the Director General, Postal Services and furnishes a certificate of verification along with an abstract of the verified stock.

Monthly Reconciliation of sale and interest on securities

1.44 When all intimations of sale of securities and interest payment orders for one complete month are issued the total amount on account of sale of securities as also of interest for each Postal Circle is separately worked out from manuscript registers maintained in the Government Security Section and forwarded to Postal Accounts Offices concerned embodied in statements [in Form No. D.G. (PA)-238] not later than the 3rd day of the second month following that to which the figures relate, in order to reconcile these figures with the total of the amounts advised through several intimations of sale and interest payment orders. Any discrepancy detected by the Account Offices in the course of this reconciliation should be communicated to the Government Security Section of the office of the Director of Accounts (Postal) Calcutta, for re-adjustments, if necessary along with the details of each intimation of purchase sale and interest payment order by summation of which the total figures for the month are arrived at in the Postal Account Offices,.

1.45 A register in Form No. D.G. (PA)-241 should be maintained in the Govt. Security Section for the purpose of effecting a monthly reconciliation of sale. This register should be submitted to the Accounts Officer for review at the end of the each month.

Half Yearly Verification of Balances in Depositors' Accounts

1.46 The total holdings in different loans and bonds of each depositor on the 30th September and 31st March each year should be compiled in Form No. D.G. (PA)-251 from ledger cards separately for each Postal Circle. The total holdings in each loan and bond thus arrived at should be verified with the Stock Day Book, vide para 1.40.

1.47 The J.A.O. in Charge of the Govt. Security Section is personally responsible for seeing that this verification is regularly made and that the ledger abstracts are submitted to the Accounts Officer on due dates, namely, 1st February and 1st August, each year.

Annual Adjustment of Gain or Loss

1.48 The cost of balance of Govt. Promissory Notes in the Imprest in each loan on the 31st March of each year should be calculated at the last available market rate of the financial year or at the average cost whichever is less.

If the total cost so arrived at for all the loan taken together is more than the net Detail Book balance under the head “Savings Bank Investment Account-Cost of Govt. Promissory Notes in the Imprest” the excess represents profit, and if less, loss. The profit or loss so worked out should be passed on to the Central Revenues Accounting authority by debit or credit to the head mentioned above.

In order to work out the average cost of Govt. Promissory Notes referred in the preceding paragraph a register in Form D.G. (PA)-202 should be maintained in which columns 1 to 18 should be filled in monthly and progressive totals worked out. Whenever any estimate of profit or loss is required to be calculated for information of the Central Revenue Accounting authority or when profit or loss is required to be passed on to him at the end of the year calculation required in the matter is to be made on a page of the register, set apart for the purpose.

The net Details Book balance at the close of the year under the head “Interest on the Imprest of Government Promissory Notes” represents the interest earned by the Imprest during the course of the year and should be passed on to the credit of the Central Revenues accounting authority in the March Final Accounts.

NOTE.- The Reserve Bank of India furnished the Director of Accounts, Postal, Calcutta daily with a statement showing mean rates for securities of different loan and bonds.

Statistical Returns and Publications of Accounts

1.49 A general account of transactions relating to Government Securities on behalf of Savings Bank depositors only is required by the Director General Postal Services for incorporation in the Annual Report on the operation of the Post Office Savings Bank. This account should be compiled in Form No. D.G. (PA)-253 maintained in manuscript and despatched to the Director General of Postal Services on 20th September.

1.50 A monthly statement showing details of approximate figures of sale of Government Securities with interest thereon effected on behalf of Savings Bank depositors and the approximate figures in connection with G.S. transactions effected through the intervention of the Reserve Bank of India is rendered to the Director General Postal Services (P.A. Wing) on the 16th of the month following that to which the transactions relate.

1.51 A monthly abstract of transfer entries effected by the Government Security Section is compiled in Form D.G. (PA)-519 and forwarded to the Postal Account Offices concerned for inclusion in their accounts on the 18th of the month following that to which those entries relate. A “nil” abstract should invariably be sent to an Account Office if in any particular month there is no account adjustment affecting any Postal Circle under the jurisdiction of that postal Accounts Office.

1.52 A monthly statement in manuscript showing the total amounts of debits passed on to the Pay and Accounts Office Min. of Fin (DEA) through the relevant Account of the Director of Accounts (Postal) Calcutta in respect of the discharge of the Government Securities held in the Custody of the D.G.P.S. on behalf of Savings Bank Depositors should be sent to Pay and Accounts Office Min. of Finance (DEA) by the first week of the second month following.

1.53 A statement (English & Hindi version) showing particulars of Government Securities held by the Director General Postal Services on behalf of departmental employees and contractors should be compiled in Form 20 of the Government Security Manual and despatched to the Publisher Gazette of India Old Press Building Civil Line, Delhi on or before the 5th Feb. every year for publication in the Gazette of India (Part II).

NOTE.-- The name of postal Office Saving Bank depositors should not be published in the account but the total amount held on their behalf should be exhibited in one entry “ saving Bank depositors”.

CHAPTER II

POST OFFICE CERTIFICATES

General Principles

2.1 To facilitate the investment of small amounts, the Government of India have instituted a series of National savings Certificates of Rs.5, 10, 15, 100, 500, 1000, 5000 and 10,000 which the sums of certificates of denomination Rs. 5, 10, 15 are not in sale, can be purchased at all post office doing Saving Bank business up to the limits fixed by the Government of India. The certificates are redeemable on presentation in accordance with the rules in the Post Office guide.

NOTE.-- Prior to the introduction of the KVP with effect from 1.4.88 6 year NSC VIIIth issue with effect from 5.5.88 the P.O. Certificates detailed below were being issued. Their sale was discontinued from the dates noted against each. They were however, allowed to be retained at the option of the bolder, for a further period as indicate against the series concerned with interest even after the date of their maturity:-

1. 5 Year Cash Certificates 14-6-47

2. 10 Year D.S.C. - 30-09-43

3. 12 Year N.S.C. - 31-05-57 Maturity period extended by 5 Years.

4. 7 Years N.S.C. - 31-05-57 Do.

5. 5 Year N.S.C. - 30-06-53 Maturity period extended by 7 Years and again by 5 Years.

6. 10 Years N.P.C. - 31-05-57 Maturity period extended by 5 Years.

7. 12 Years N.P.S.C. - 14-11-62 Do.

8. 12 Years N.D.C. - 14-03-70 Do.

9. 10 Years N.S.C. (I Issue) 14-03-70

10. 7 Years N.S.C. (II Issue) 31-12-80

11. 7 Years N.S.C. (III Issue) 31-12-80

12. 7 Years N.S.C. (IV Issue) 30-04-81

13. 7 Years N.S.C. (V Issue) 30-04-81

14. 6 Years N.S.C. (VI Issue) 01-04-89

15. 6 Years N.S.C. (VII Issue) 01-04-89

16. N.S.P.C. - 31-12-80

17. 5 Years N.D.B. - 20-04-81

18. 10 Years S.S.C. - 01-09-90

19. I.V.P. - 15-07-99 Interest is not payable for IVPs’ after the date of maturity.

2.2 The rules governing the issue and discharge of Cash Certificate, Defense Certificates and National Savings Certificates etc. are contained in the relevant rules issued by the Government of India.

Rules prescribing, the procedure to be followed in Post Offices in dealing with P.O. Certificates, and also for the accounts to be maintained by Post Offices and to be rendered by them to the Postal Accounts Offices will be found in Chapter 9 of the Post and Telegraphs Manual, Volume VI. Part II.

2.3 Monthly journals of P.O. Certificates issued and discharged are received in the Postal Accounts Office from the Post Office, the journal of discharges being supported by the Certificates themselves. The amounts of these journals representing the receipts from the sale of P.O. Certificates and the payments made on their redemption are also included in the monthly cash accounts submitted to the Postal Accounts Office. The procedure followed in the checking of these accounts and of the discharge certificates is described in this chapter.

2.4 The main check in the Postal Accounts Office is conducted through a Stock and Issue Register of P.O. Certificates which is maintained in Form D.G. (PA)-323. One register for each Head Post Office and for each denomination of all series, or one Register for all denominations of one or more series for each Head Post Office as may be convenient, should be used. In it is entered, from the Post Office issue Journal against the number of the P.O. Certificate, month and year of issue of each certificate.

Similarly when a P.O. Certificate is discharged and received in the Postal Accounts Office, the interest included in the amount paid to the holder is checked with reference to the date of issue and discharge as noted on the certificate and the Week (Month & Year) of discharge is noted in the Stock and Issue Register against the number of the P.O. Certificate in the column provided for the purpose. The total amounts of issues and discharges are verified each month with the figures in the Detail Book, vide para 2.39.

2.5 The outstanding credit under the head Post Office 5 year P.O. Certificates, 10 Year Defence Savings Certificates and National Savings Certificates etc. which is kept open in the books for three financial years after the period of their original or extended maturity, as the case may be, for each series will thereafter lapse to Government and be transferred to Government by credit to Minor Head “0075-00-101-000001-unclaimed Deposits” under Major Head “0075-Miscel1aneous General Services 00-101-Unclaimed Deposits”. This does not however preclude the subsequent payments should claims arise.

Sectional Arrangements, Distribution of Work etc.

2.6(a) The P.O. Certificates Section is divided into the following groups:-

(i) Checking Group.

(ii) Accounting Group.

(iii) Miscellaneous Group.

(b) (1) Each of the checking group is entrusted with the checking of journals of P.O. Certificate issued and discharged, posting in Stock and Issue Registers, proving, re-issuing objection etc. and other miscellaneous work mainly connected with the checking.

(2) The Supervisor will be generally responsible for the work of the item workers in his group. He will allot, in consultation with the J.A.O., the Post Offices to the officials in such a way that each is given full work for the month as per prescribed formula and see that they complete all stages of work within the prescribed due dates. He will check every item in the objection statement or half marginal reference prepared by the item workers with the original documents, initial them and submit them to the J.A.O. who will pass the half marginal reference and submit the objection statement to the A.O. where necessary. He will receive the inward letters and replies to the half marginal references and deal with all correspondence relating to the Group. He will see that the Stock and Issue Registers are properly maintained and that the Journals and invoices are properly filed by the item workers.

(3) The supervisor will also concurrently review the work of item workers covering all stages including postings and checking of transaction, proving classification etc. the entries in the registers, lists and vouchers being initialed (with date) by him. The result of review should be noted in the diary in form D.G. (PA)-444 which should be submitted daily to the J.A.O. and weekly to the A.O. He is also responsible for the proper up keep of the records in his group.

(i) Postings and preparation of the Circle Balance Sheets,

(ii) Preparation of all statistics,

(iii) Preparation of all periodical statements in respect of P.O. Certificates,

(iv) Maintenance of Transfer Register,

(v) All adjustments relating to transfer transactions and reconciliation with Detail Book figures.

(d) The miscellaneous group consists of checker or checkers who are independent of each other. Each checker or entrusted with one or more items of work mentioned below:-

Issue or declarations, warrants of payment on safe Custody acknowledgements, maintenance of objection book etc

When a P. O. Certificate is requisitioned for, a check slip in Form D.G. (PA)-319-A showing the particulars of the P. O. Certificate as well as the number and date of the letter with which it is sent, will be prepared, signed by the checker in charge and placed in the bundle. The particulars of the certificates will also be entered in a register Form No. D.G. (PA)-319 and the date of despatch and receipt of the certificate noted therein. The register should be reviewed weekly by the J.A.O. and monthly by the A.O. For this purpose a list of outstanding items should be drawn at the end of the register by citing the serial number on each page of the register.

2.7 The J.A.O. and the A.O. will see that the checker perform their duties properly. They should review every month the accounts and other work in the section with a view to see that the supervisors and checker have done their work properly and also check the classification slips. The J.A.O. should note in his diary in form No. D.G. (PA)-444 the result of the examination and the mistakes found and submit it to the Account Officer weekly and to the Head of the Office on completion of each months review.

NOTE 1 -- A register in manuscript should be maintained in the Section to watch the completion of review by the Supervisors and J.A.O. by the due dates. This register should remain the personal custody of the J.A.O. and should be submitted to the A.O. in-charge on the 21st of each month, for review and selection of denominations of each class of certificates for every Head Post Office to be reviewed by the supervisors and the J.A.O. respectively.

NOTE 2 -- A certificate on the following lines under the dated initials of the checkers, supervisors and the J.A.O. should be recorded on completion of months review in the review diary before its submission to the A.O. in-charge.

“Certified that the checking and review of vouchers and returns marked for check and review/required to be checked and reviewed for the month __________________ have been completed and objections if any raised as a result of such check and review have been issued”.

2.8 The register of irregularities maintained by the portioners under para 2.17 shall also be scrutinised by the Group Checkers, Supervisors/Reviewers and the J.A.O.s while conducting review to see that the irregularities of the kind are properly entered therein and prompt action has been taken as indicated in para 2.17.

2.9 The A.O. In-charge of the Cash Certificates Section should keep a register of allotment of post review of checking of all post offices in form M.S.O. (T)-5. As soon as the checking and current review of months accounts are over the register should be put up to the Director/Dy. Director who will enter the names of the Post Office or offices to be reviewed during the Internal Check. The reviewing officer should submit to the Director/Dy. Director a report of the review in form SM15.

NOTE -- If necessary a senior JA.O. who is not in-charge of Cash Certificates Section may be asked to take up this review.

Due Dates

2.10 The following due dates should be observed for the completion of several items of work (including issue of objection statements and checking memoranda):

(a) Checking and posting of Monthly Journals. (b) Proof of Posting	- Next Month -11th of the following Month of account. -29th of the following Month of Account
(c) Completion of Posting of Registers of Issue and Discharges [Form No. D.G. (PA)-337 & 338].	-25th of the following Month of Account
(d) Monthly adjustment of fees-- (i) realised in stamp on account of payment of NSC or other P.O. Certificates through Village Postmen. (ii) preparation of Classification slips.	Next Month following the month of account. 17th of the following month.
(e) Agreement of the proof sheet with the figures in Form D.G.(PA)-337 & 338.	5th of the 3rd month following.
(f) Preparation of the Circle balance sheet D.G. (PA)-339 and Agreement of Broad sheet of Proof sheet balances D.G.(PA)-339-E.	15th of the 3rd month following.
(g) Annual verification of balances	31st October

Progress Report

2.11 The statement [Form No. D.G. (PA)-320] on the state of work of each member of the Section should be prepared by the checkers concerned, reviewed by the J.A.O. daily and submitted every Monday to the Account Officer-in-charge with such comments as the J.A.O. may think necessary.

Accounts submitted by Post Offices.

2.12 Each Head Post Office send the following documents duly entered in a P. O. Certificate Vouchers list [Form CC.-31-A] to the Accounts Office on the dates mentioned herein:-

(a) Monthly Journals of National Savings Certificate /N. D. Bonds issued (sold) and delivered to investors-Forms CC-18 and 18(S).

(b) Monthly Journals of Cash Certificates, Defence Savings Certificates and National Saving Certificates etc. discharged (paid)-Forms CC. 19 and 19(S).

(c) Monthly Journals of discharges (i.e. repayments) of P. O. certificates in safe custody [Forms CC-19 and 19(S) with headings suitably altered].

(d) Monthly summaries of National Savings Certificates issued and Cash Certificates, Defence savings Certificates and N.D. Bonds, Savings Certificates discharged, [Forms CC-30 and 31].

NOTE 1 -- A separate journals required for each denomination of P.O. Certificates issued and discharged.

NOTE 2 -- Jouma1& similar to (a, (b) are also sent by each sub-post office through its Head Office.

NOTE 3 -- Immediately on receipt the bundles should be carefully examined by a senior checker or at the discretion of the J.A.O. to see whether all the returns and vouchers mentioned in the voucher list [Form CC-31-A] have been received correctly. The Checker should record a certificate “checked” under his dated initial on each voucher list checked by him. If there is any discrepancy, it should be brought to the notice of the Postmaster concerned and settled as early as possible. If the above examination is not possible immediately on receipt of the bundles, they should be kept under lock and key in the custody of responsible persons, preferably the J.A.O. of the Cash Certificate Section, till the examination is taken up at the time of checking or on an earlier date.

NOTE 4 -- The journals in respect of certificates cancelled or spoiled before issue, duly supported by the certificates marked cancelled or spoiled by the Postmasters are also received with issue journals. The voucher list examined should after check set each such certificate immediately perforated in his presence.

Verification of credits and debits on account of P.O. Certificates issued and Discharged with the Figures in the Cash Account.

2.13 As soon as the monthly Cash Accounts are received from the Post Offices, the Postal Accounts Section will compile a statement in Form D.G. (PA)-322 showing the amounts credited and debited therein On account of sales and discharges (Principal and Interest) of Post Office Certificates respectively and send it by the 15th of every month to the Cash Certificates section where figures will be compared with the amounts shown in the Monthly summaries of Issues and Discharges and steps should be taken to settle as adjust discrepancies, if any. (See Para. 2.39 and 2.65).

Examination of Summaries

2.14 The Monthly summaries of P. O. Certificates issued and discharged [Forms CC- 30 and 31] received with the Monthly account should be carefully checked by the item-workers with the Monthly journals at P. O. Certificates issued and discharged. Summaries for the monthly account should, after check be made over to the checker for postings in the Abstract of P. O. Certificates issue and discharged [Form No. D.G. (PA)-337] in respect of issues and in the Register of Discharges [Form No. D.G. (PA)-338] in respect of discharges, vide Para 2.28 and 2.29.

Checking of Journals of P.O. Certificates Issued

2.15 In checking the Issue Journals, it should be seen that:-

(i) Each item in the Journal has an entry number against it, and that these entry numbers run in a consecutive series for each denomination each month, so that the quotation of the entry number and month will at once enable any issue to be traced.

(ii) The serial letters are always clearly shown before the serial number.

(iii) The issue price has been realised at the prescribed rates.

(iv) The totals are correct.

(v) The irregularities regarding purchase in excess of the prescribed limit, when noticed are pointed out, and

(vi) The irregularities in connection with the use of the proper Form, when detected, are pointed out.

Any omission or discrepancy should be noted and entered either in an objection statement or in a half margin memorandum (See para 2.55).

Checking of Journals of P.O. Certificates Discharged

2.16 The Monthly Journals of discharges (Forms CC. 19 and 19(S) should be examined to see:-

(i) that all the particulars required by the form are given;

(ii) that the entry numbers run in a consecutive series for each month;

(iii) that each entry is supported by a paid (discharged) P. O. Certificates or Safe Custody receipt if any voucher is wanting, it should be called for, a check slip in Form. No. D.G. (PA)-319-A being prepared and kept in the proper place;

(iv) that the amount shown in the column for “Interest” is correct with reference to the dates of issue and discharge of the certificates; and

(v) that the totals of the journals are correct

NOTE l -- On completion of check of an issue of discharged Journal, the checker will write the words checked by ……………… on the last sheet of the journal signing the entry and dating his signatures.

NOTE 2 --If a discharged certificate is not received with the list, it should be called for through an objection statement.

2.17 It should be seen that there are no erasures or alterations etc. in the summaries and the journals of certificates issued and discharged, and if there be any, the same are duly authorised by proper attestations. The irregularities detected as a result of the above check should be entered in a manuscript Register by the portioner concerned under his dated initials. The group checker will pick out from the register the items of issues and discharges in respect of which unauthorised corrections, over writings, erasures or alterations etc. have been noticed and immediately issue special references to the Postmasters through form D.G. (PA)-325-B after keeping a note thereof in the register.

The endorsement of the form D.G. (PA)-325-B may be dispensed with at the discretion of the A.O. in case the irregularities are of minor nature and non-persistent.

2.18 In checking a discharged P. O. Certificates it should be seen:-

(a) that where the signature is decipherable, the name signed is the same as that shown in the certificate;

(b) that the certificate is receipted by the payee for the amount including interest, if any, received by him and that his signature on the reverse of the certificates is dated;

NOTE -- In the case of P.O. Certificate is issued in joint names, it should be seen that the provisions of the P.O. Certificates Rules have been fulfilled.

(c) that the P.O. certificate is impressed With the round and oblong money order stamp. If however, an omission is detected, the Postmaster should be asked to write the word "Discharged" in red ink across it, over his signature with date;

(d) that when a P. O. Cash Certificate is discharged at an office other than that at which it is registered, the requirements of the Post Office Cash Certificate rules have been complied with. In cases where payment is made without pre-verification from the office of registration; it should be seen that an advice of payment in Form CC-10 is received and that the certificate printed on its reverse bas been duly signed by the Postmaster of the office of registration. The advice of payment should, after check be filed with the relevant discharged certificate for preservation. In case an advice of payment relates to more than one Certificate, the advice should be attached, to one of the certificates concerned but a remark regarding its receipt should simultaneously be made on the rest of the certificates also, indicating thereon the number of the certificates to which it has been attached.

NOTE -- The advices of payment received in the Section should in the first instance be entered in a separate manuscript register as per specimen given below the record clerk and the same should be delivered to the portioner concerned after obtaining his dated initials in column 7 of the register in token of receipt. Columns 8 and 9 should be filled up by the portioner at the time of filling the advices of payment with the relevant paid certificates.

Serial no. No of advice of payment and From whom received

the date of its receipt

1 2 3

Particular of certificate covered by the Office of

advice of payment issue Office of payment

Serial no.(a) Denomination(b) & Date

4 5 6

Dated initials of the portioner Particulars of the certificate with which

A.P. has been recorded

Serial No. Denomination

(a) (b)

7 8

Dated initials of the portioner in token of filing the A.P. Remarks

9 10

In the first week of each month a pending list should be prepared by the record clerk in the register itself. The pending list should show portion-wise, the serial No. of advices of payment received up to 15th of the previous month but not disposed of. The register should be submitted by 7th of each month to the sectional J.A.O. through group accountant/supervisor and quarterly to the Accounts Officer in charge. While reviewing the register, the group Accountant/Supervisor and the Sectional J.A.O. should also check the correct disposal of a selected number of advices of payment and attest the entries in the remark column in token of the check.

(e) that in the case of a deceased investor, proper sanction for payment has been received;

(f) that in the case of a minor holder proper sanction to the payment has been received.

NOTE l -- Copies of sanctions issued by officers higher than Postmasters, to payments of P.O. Certificates held by minor or deceased holders, will on receipt be filed after scrutiny in a guard file. The expenditure on account of the discharge of such certificates will be checked against the copies of the sanctions in which the particulars of the payment will be noted by the Accountant and attested by the reviewer/J.A.O.

NOTE 2 -- on receipt of a sanction authorising payment of P.O. certificate to the heirs of a deceased holder Without the production of a succession certificate or other legal evidence and where there is no nomination on record it should be seen that the sanction contained a certificate by the sanctioning authority to the effect that the current value of the P.O. certificate(s) held by the deceased holder does not exceed Rs. 100, 500, 1000, 5000, 10000 as per claimants statement in the claim application.

(g) that when a minor's holding has been paid at an office other than the office of registration, the P.O. certificate has been pre-verified by the latter office. If an omission is detected in this respect the P.O. certificate should be got verified by the office or registration.

(h) that payment is received by the minor himself the word “ex-minor or ex-minors in the case of joint holdings” is written below his signature on the reverse of the P. O. Certificate under the signature of the Postmaster;

(i) that payment of P.O. certificates purchased in the name of a teacher out of the amount at his credit in the Teachers' Provident Fund Account, has been made only to the person authorised by the Local Government or Administrator controlling the fund;

(j) that when the value of a discharged P.O. Certificate is paid to a person authorised by the holder a letter of authority is furnished along with the discharged P.O. certificate and that the signature of the messenger also is obtained on the reverse of the P.O. Certificate.

Any discrepancies or omissions in any of these respects should be noticed either through an objection statement or through a half marginal memorandum. A check slip in Form D.G. (PA)-319-A should be prepared and kept in the proper place when a discharged P.O. Certificate is sent to a disbursing officer for removal of any irregularity noticed therein.

NOTE 1 -- As the discharge of P.O. Certificates at an office other than the office of issue has to be posted, in the issue and stock register of the office of issue, the discharge certificate should be filed with the discharged list of the office of issue for the week of discharge.

NOTE 2 -- After exercising the above checks the discharged certificates should be enfaced checked with a rubber stamp over the dated initials of the checker.

2.19 In the case of payment of Postal Certificates through village Postman as prescribed in para 554 of P&T Manual, Volume VI. Part II it should also be seen that:-

(i) the application for discharge and warrants of payment have been received along with the discharged certificates.

(ii) the value of stamps affixed On each application for discharge is equivalent to M.O. Commission payable on the amount of the certificate(s) if the same had been remitted by M.O. and that the certificates bear on their reverse the signature of the paying village postman with his full designation and date.

NOTE 1 -- The certificates which can neither be discharged nor delivered back to the holder shall be received in the Postal Accounts Office for safe custody. The procedure prescribed in para 2.67 should also be followed in such cases.

NOTE 2 -- The amount of fees realised by the village postman in the shape of Postage stamps, the details of which will be available from the warrant of payment received along with discharged certificates and for the monthly intimations in respect of cancelled and destroyed certificates submitted to Postal Accounts Office with monthly returns should be adjusted by a monthly consolidated transfer entry by crediting ‘155-Postal Receipts-order Receipts-Commission realised on post office certificates paid through village postman’ and debiting ‘155-Postal Receipts Sale of Postage Stamps (b) Deduct-Refund of postage stamps’.

[Orders contained in this note will apply in respect of the commission realised during the year 1958-59 and onwards].

Stock and Issue Register of P.O. Certificates

2.20 As prescribed in para 2.4 the Postal Accounts Office should maintain a set of registers in Form D.G. (PA)-323 either for each denomination of all series for each Head Post Office or for all denominations of one or more series for each Head Post Office to record the supply, sale and redemption of the certificates. One register in each set should be set apart for each denomination of P. O. Certificates of all series or for all denominations of one or more series and the pages in each register should be numbered and provided with an index in Form No. D.G. (PA)-324. Different coloured ink may be used in different financial year, for posting in Stock & Issue Registers.

2.21 Blank P.O. Certificates are supplied to Post Offices by the Postal Stock Depots and consolidated list Of certificates issued to Post Offices is sent to Postal Accounts Office twice a month one for period from 1st to 14th and the other from 15th to the end of the month vide Rule 377(4) of the posts and Telegraphs Manual, Volume VIII. On receipt of the consolidated list the serial number of each P.O. Certificate entered in the consolidated list should be separately entered in the proper column of the Stock and Issue Register for the particular denomination, one line should be reserved for each number and care should be taken that the numbers are entered serially for each of denomination. When the consolidated list has been completely posted in this manner, the word “Posted” should be noted on it over the dated signature of the poster and the consolidated list, pasted into a guard file, a separate file being maintained for each Circle. The posting of consolidated list in the Issue Register should be attested by the J.A.O. Similarly when original invoices of P.O. certificates returned to Postal Stock Depots are received from the post office with the necessary Certificates as required by Rule 532 of Posts and Telegraphs Manual, Volume VI, Part II, the numbers in the Stock and Issue Registers should be neatly scored out in red ink by the poster and attested by the J.A.O. In respect of the original invoices received for the supply of P.O. Certificates by one Head Office to another, the same procedure should be followed in deleting the entries from the register of the supplying post office. Entries of the P.O. Certificates should also be made in the Stock and Issue Register of the receiving Post Office by the poster and attested by the J.A.O.

2.22 After the Journals of P.O. Certificates issued have been completely checked as prescribed in para 2.45, the number of the week, the month (abbreviation) and the year in which each P.O. Certificate was sold will be stamped or written in ink in columns 2 and 6 of the Stock and Issue Register against the entry of the number of the Cash Certificate.

NOTE -- As soon as an intimation regarding the attachment of a Post Office Certificate by a Court of Law is received in, the Postal Accounts Office from the Postmaster, suitable note should be kept in red ink in the Stock and Issue Register under the attestation of the J.A.O. Any corrections to the entries in the Register should be attested by the J.A.O.

2.23 After the discharged P.O. Certificates have been checked as described in para 2.18 they should be serially arranged. The date of discharge (week month and year) should then be posted in the register, as in the case of “Issues” in columns 3 and 7.

At the time of posting of Discharges in the Stock and Issue Register, the date of issue as shown in discharged P.O. Certificate should be compared with the Month of issue as entered in the register. The office of payment should be noted in the Register in the case of P.O. Certificates discharged at an office other than that of issue and in cases where discharges are accounted for in a month other than that of payment, the month of account should also be noted.

NOTE -- In the case of discharged declaration it should further be seen that the procedure in para 2.51 is followed.

2.24 On completion of posting of a issue or discharge journal in the Stock and Issue Register, the poster will write the words “Posted by (name of the poster)” on the last sheet of the journal signing the entry and dating his signature. Any discrepancy between the serial numbers of P.O. Certificates taken up for posting and those entered in the Stock and Issue register will be reported in a half margin memorandum.

NOTE l -- As the stock and Issue Registers are very important records, it is essential that entries of particulars should be carefully made. Any corrections to the entries in the Register should be attested by the J.A.O.

NOTE 2 -- Issues and discharges which have not been posted in the Stock and issue register for any reason should be entered in the Register of Un-posted Issues/Discharges in form D.G. (PA)-338-A. (Part I) and their subsequent posting in that stock and issue register watched through this register. One such register should be maintained for each class of certificates and for each Head Post Office or group of offices as may be found necessary, separately for issues and discharges. Where a regis-ter is in use for a group of offices separate set of pages should be allotted for each Head Office. Each register should have attached to it an Abstract in form No. D.G. (PA)-338-A (Part II) showing the number and amount of items kept un-posted in each month, the number and amount of issues/ discharges posted during the month and the closing balance at the end of each month. The particulars of item, kept un-posted and those subsequently c1eared should be entered by the journal checkers. Where copying of details of individual items is not considered necessary (for instance, credits for which preliminary receipts have been issued and which remain un-posted for want of serial numbers of certificates issued etc.), the total number of such items and the total value thereof may be entered. The register should be maintained by the Supervisor of each checking group and Submitted to the sectional J.A.O. and B.O., by the 25th of the next month following the month of account.

The balance sheet clerk should, before signing the consolidated abstract of issues and discharge in form D.G. (PA)-32l-A, see that the number of un-posted items shown therein with the monthly total shown in the register of un-posted items.

At the end of each financial year the outstanding items in the register of un-posted items should be totalled and the total agreed with the closing balance of March shown in the abstract and a certificate of agreement recorded over the dated signature of the supervisor. While reviewing the register for March, the Sectional J.A.O. should see that the above certificate has been recorded by the Supervisor.

A statement in the form indicated on the next page showing the progress in posting the un-posted issues and discharges during the quarter ending March, June, September and December of each year should be submitted to the Postal Wing of the Postal Directorate by the end of the month following the quarter.

Proof of Posting

2.25 After the issues and discharges for a month have been posted in the Stock and Issue Registers, the total number of issue and discharges, are posted on each page should be counted and the number entered in the Proof Sheet (Form No. D.G. (PA)-321) in appropriate columns. After the number of issues and discharges of all the pages have been entered in the proof sheets, they should be totalled and the totals agreed with the figures of issues and discharges, shown in the register in form D.G. (PA)-337 and 338 respectively for the month. To facilitate the agreement, the details should be worked out in form No D.G. (PA)-321-A. The proof sheet should then be handed over to the Supervisor for review. The J.A.O. should check the entries of the proof sheet from the Stock and Issue Registers. Irregularities discovered in the review should be noted in the review Diary, similarly check should also be exercised in the case of safe custody transactions.

Transfer of P.O. Certificates and Issue of Duplicate Certificates in Lieu of Lost P.O. Certificates between different persons.

2.26 When a P. O. Certificate is transferred from one person to another the Head Postmaster issues in the name of the transferee a fresh certificate bearing the same date of maturity as that of the original certificate which with the endorsement of the original holder on its reverse is sent to the Postal Accounts Office (vide Rule 561 of the Posts and Telegraphs Manual Volume VI). Suitable entries should in such cases be made against the numbers of both the P.O. Certificates in the Stock and Issue Register.

In the case of a declaration already issued by the Accounts Office in lieu of a lost P.O. Certificate the original declaration received from the Postmaster should be cancelled in P.A.O. after verification with the entries in the Register of Declarations and the Stock and Issue Register.

Balance Sheet

2.27 A numerical Balance Sheet showing for each Circle, the total number of P.O. Certificates sold by Post Offices in that Circle, but remaining undischarged at the end of each month, relating to each year of issue, should be maintained in Form D.G. (PA)-339. Separate pages should be allotted for each official year. The column for issue is posted from the Abstract of Issues and Discharges [Form. No. D.G. (PA)-337] mentioned in Para 2.28 and the discharges are posted from the classified abstract of discharged P.O. Certificates [Form D.G. (PA)-339-B] referred to in Para 2.38.

To ensure that the postings in Balance Sheet are correctly made a broadsheet in Form No. D.G. (PA)-339-E should be maintained in addition according to series of issue. The opening balances at the commencement of each year should be copied from the broadsheet for the previous year, and the monthly issues and discharges according to series of issues are to be posted therein from the Proof-Sheets [Form D.G. (PA)-32l] and an agreement effected monthly with the figures shown in the Circle Balance sheet.

19………………..19	C.B Rs.	13		NOTE: Figures for each series of certificate should include the value of unposted items of all the denominations and of all circles under the accounts jurisdiction of each Postal Accounts office
	Clearance during the Quarter	12
	O.B. Rs.	11
19…………………19	C.B Rs.	10
	Clearance during the Quarter	9
	O.B. Rs.	8
19……………….19	C.B Rs.	7
	Clearance during the Quarter	6
	O.B. Rs.	5
Upto 19 ……………………19	Closing Balance Rs.	4
	Clearance during the Quarter Rs	3
	Opening Balance Rs.	2
Series of Post office certificate		1	5 Years C.C 10 Yrs D.S.C 5 Yrs. N.S.C 7 Yrs N.S.C 12 Yrs N.S.C 10 Yrs N.P.C 12 Yrs N.PSC 12 Yrs N.D.C. 10 Yrs N.S.(F.I.) 7 Yrs N.S.C.II Issue 7 Yrs N.S.C.III Issue 7 Yrs N.S.C.IV Issue 7 Yrs N.S.C.V Issue 5 Yrs N.D. Bond

Similar agreement should be effected in the case of safe custody transactions also. As the figures shown in the Circle Balance Sheet are according to years of issues, the numbers shown against different years of issue under one series are to be added together to effect an agreement with the figures shown in the broadsheet which together with the Circle Balance Sheet should be submitted to the Branch Officer every month. Adjustments made in March Final Accounts and journal entries should also be entered in the broadsheet and the figures agreed with those in the Circle Balance Sheet.

Register of Abstract of Issues and Discharges

2.28 To facilitate consolidation of P.O. Certificates issued and. discharged in a Circle, Abstracts and Registers in Form No D.G. (PA)-337 and 338 are maintained as explained below:--

Issues are posted in the Abstract in Form D.G. (PA)-337 from the checked summaries for the last week of the month and the “Discharges” are posted from the “Register of Discharges” in Form No. D.G. (PA)-338 are explained in Para 2.29. The total of the figures thus arrived at represents the issues and Discharges for the whole Circle for the month. A reconciliation should be effected between these figures and those shown in the Detail B

VOLUME II